India surpasses China, becomes top iPhone exporter to US for the first time
In April 2025, India shipped 3.3 million iPhones to the US, while exports from China fell dramatically to just 900,000 units, according to recent data.
- May 29, 2025,
- Updated May 29, 2025 3:27 PM IST
India has, for the first time, overtaken China in monthly iPhone exports to the United States, marking a pivotal moment in Apple’s global supply chain realignment. In April 2025, India shipped 3.3 million iPhones to the US, marking a 76% year-on-year increase, while exports from China fell dramatically to just 900,000 units, according to data from Canalys, now part of market research firm Omdia.
This shift coincided with heightened trade tensions and the reintroduction of steep tariffs on Chinese imports under former US President Donald Trump. Chinese-made iPhones currently face a 30% import duty, compared to a base 10% tariff on those assembled in India. While Trump ultimately exempted iPhones from the tariff on 11 April, Apple had already begun stockpiling US-bound inventory in March, pushing exports from India to a high of 4.4 million units that month.
Between January and April 2025, China still led in total shipments, exporting 13.2 million iPhones to the US compared to India’s 11.5 million. However, analysts say the momentum is clearly shifting. Le Xuan Chiew, research manager at Omdia, told CNBC, “India has been catching up steadily month after month.”
Apple began diversifying its manufacturing base during the COVID-19 pandemic, heavily investing in India's supply chain. Foxconn, the primary assembler of iPhones in India, is expanding operations, while Tata Electronics, which now controls Wistron’s former business and manages Pegatron’s local operations, has also begun assembling the iPhone 16 and 16e at its Hosur plant. Apple reportedly assembled $22 billion worth of iPhones in India in FY25.
The US remains Apple’s largest iPhone market, with quarterly demand estimated at around 20 million units. Analysts say India is not yet equipped to meet this demand in full. “India’s manufacturing capacity isn’t expected to grow fast enough to take the entirety of US demand. It’s still too early,” said Chiew, adding that full scale may not be reached before 2026.
Despite India’s gains, Apple now faces pressure from both Beijing and Washington. While China is displeased with Apple’s shifting supply chain, Trump has criticised the company for not moving iPhone production to the US. “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote on Truth Social last week, threatening a 25% tariff on non-US iPhones.
However, experts argue that full iPhone production in the US is neither realistic nor economically viable. “The concept of Apple producing iPhones in the US is a fairy tale that is not feasible given the labour and cost structure,” said Wedbush Securities analyst Dan Ives, who estimates that such a move could push iPhone prices as high as $3,500.
While India’s rise as a manufacturing hub marks a major strategic win for Apple, analysts caution that the momentum may moderate through the rest of the year. Still, with new investments, including Foxconn’s recently announced $1.5 billion expansion in India, the trajectory seems clear: Apple is steadily reducing its dependence on China, and India is fast becoming central to that vision.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine
India has, for the first time, overtaken China in monthly iPhone exports to the United States, marking a pivotal moment in Apple’s global supply chain realignment. In April 2025, India shipped 3.3 million iPhones to the US, marking a 76% year-on-year increase, while exports from China fell dramatically to just 900,000 units, according to data from Canalys, now part of market research firm Omdia.
This shift coincided with heightened trade tensions and the reintroduction of steep tariffs on Chinese imports under former US President Donald Trump. Chinese-made iPhones currently face a 30% import duty, compared to a base 10% tariff on those assembled in India. While Trump ultimately exempted iPhones from the tariff on 11 April, Apple had already begun stockpiling US-bound inventory in March, pushing exports from India to a high of 4.4 million units that month.
Between January and April 2025, China still led in total shipments, exporting 13.2 million iPhones to the US compared to India’s 11.5 million. However, analysts say the momentum is clearly shifting. Le Xuan Chiew, research manager at Omdia, told CNBC, “India has been catching up steadily month after month.”
Apple began diversifying its manufacturing base during the COVID-19 pandemic, heavily investing in India's supply chain. Foxconn, the primary assembler of iPhones in India, is expanding operations, while Tata Electronics, which now controls Wistron’s former business and manages Pegatron’s local operations, has also begun assembling the iPhone 16 and 16e at its Hosur plant. Apple reportedly assembled $22 billion worth of iPhones in India in FY25.
The US remains Apple’s largest iPhone market, with quarterly demand estimated at around 20 million units. Analysts say India is not yet equipped to meet this demand in full. “India’s manufacturing capacity isn’t expected to grow fast enough to take the entirety of US demand. It’s still too early,” said Chiew, adding that full scale may not be reached before 2026.
Despite India’s gains, Apple now faces pressure from both Beijing and Washington. While China is displeased with Apple’s shifting supply chain, Trump has criticised the company for not moving iPhone production to the US. “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote on Truth Social last week, threatening a 25% tariff on non-US iPhones.
However, experts argue that full iPhone production in the US is neither realistic nor economically viable. “The concept of Apple producing iPhones in the US is a fairy tale that is not feasible given the labour and cost structure,” said Wedbush Securities analyst Dan Ives, who estimates that such a move could push iPhone prices as high as $3,500.
While India’s rise as a manufacturing hub marks a major strategic win for Apple, analysts caution that the momentum may moderate through the rest of the year. Still, with new investments, including Foxconn’s recently announced $1.5 billion expansion in India, the trajectory seems clear: Apple is steadily reducing its dependence on China, and India is fast becoming central to that vision.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine